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DISCUSSION QUESTIONS AND EXERCISES 1. SRC Inc. buys shrink wrap in 1,000-pound rolls. Annual demand is 3,500 roll The cost per roll is $1,000, and
DISCUSSION QUESTIONS AND EXERCISES 1. SRC Inc. buys shrink wrap in 1,000-pound rolls. Annual demand is 3,500 roll The cost per roll is $1,000, and the annual holding cost is 25 percent of the co Each order costs $50. a. How many rolls should SRC order at a time? b. What is the economic time between orders? Complete the following MRP record. The lot size is a multiple of 60 with a holing cost of $300 per unit per period. What is the period with the largest holding cost for both average and end item values? (average/end) Lot size: 60x Period 4 290 7 GR 5 125 6 80 90 125 150 60 NR POR Period 4/Period 2 Period 1/Period 2 Period 2/Period 2 Period 4/Period 7
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